Need States Across FMCG

January 2025

Category-, occasion- and substance-agnostic consumers are focusing ever more consciously on the desired outcome of their consumption behaviour, representing a step change in purchasing motivators that makes it vital for brands, retailers and their supply chain partners to understand, decode and quantify the need states landscape.

EUR 1,375
Request More Information

Delivery

This report comes in PPT.

Key Findings

Lifestyle complexity and quest to optimise drive uptake

Increased lifestyle fragmentation, pressure for productivity, along with a desire for optimisation and self-stability are resulting in strong growth in salience of the need states framework among consumers seeking to bring precision and effectiveness to their consumption. 

Ingredients are vital to the delivery of outcomes

There exists a symbiotic relationship between need states and ingredients as effective formulations are crucial to the fulfilment of the implicit promises made by need state positioning. Outcome-based language can also shape consumer expectations of newer functional actives.

Material challenges to executing on need states

The four key frictions to successfully implementing a need state positioning are regulatory (restrictions on claims language), formulation (delivering an efficacious product), differentiation (standing out in crowded fields) and socio-demographic (ensure target consumers are receptive).

Monitoring and measuring universe of needs is key

It is vital for brand owners to monitor and quantify the need state universe to identify existing emerging areas of opportunity. Measurement of outcome-orientated consumption is challenging and requires a blend of approaches to unveil the true size of prize.

Need states to embed and become more granular

Use of need state positioning is growing across FMCG industries as brand owners recognise expanding consumer interest (which in turn will fuel greater awareness). As need states go mainstream, hyper-personalisation in messaging and formulation will lead to greater granularity.

 

Why read this report?
Key findings
Consumers are attuned to and looking to address a broad range of needs
What are need states?
A powerful means of segmenting and targeting modern consumer behaviour
Key drivers of the need states mindset in modern consumers
Euromonitor’s updated need states framework
Emerging need states
Framing need states as the nexus of short- and long-term drivers
Need states framework is a recognition of multifaceted consumer drivers
Potency of need state positioning
Symbiotic relationship between ingredients and need state delivery
Need states and ingredients
Kind Patches: Formulating across a need states-orientated portfolio
Key challenges to developing and executing a successful need state positioning
Regulators are hair trigger wary of claims in marketing language
Products must be able to deliver the promises implied by need state positioning
Standing out from an ocean of products converging towards a mean
Understanding where and what need states clear the sociodemographic hurdle
The opportunities and challenges of sizing need state economies
Investigating the pyramid - potential approaches to quantifying size of prize
Euromonitor’s sizing approach blends web scraping and expertise
A proof of concept across five markets shows that recreation is king in soft drinks
Our expert’s view of need states in Consumer Health
Lifestyle maintenance positionings and immunity on the rise
Multifunctionality at the heart of consumer health need state innovation
Our expert’s view of need states in Packaged Food
Energy and immunity central to propositions as mental wellbeing gains traction
Innovation pushes packaged food into novel areas
Our expert’s view of need states in Non-Alcoholic Drinks
Energy remains dominant as mental wellness offerings expand rapidly
Flood of need state beverage innovations emphasises functional commitments
Our expert’s view of need states in Beauty and Personal Care
Need states in BPC centred around core physical needs with emerging emotional focus
Mental and emotional wellbeing emerging rapidly in beauty and personal care
Our expert’s view of need states in Cannabis
Mood modulation dominates cannabinoid need states
Cannabinoid innovation demonstrates ability to service frontier need states
Our expert’s view of need states in Home Care
Need states offer premium opportunities for wellness-positioned home care brands
Mood, sleep and immunity to the fore in home care need state innovation
Our expert’s view of need states in Pet Care
Physical needs a perennial focus with stress relief and emotional wellbeing rising fast
Owners increasingly seek to address pet stress and mental wellbeing
Recommendations for navigating need states
Evolution of need states across FMCG
Questions we are asking

Soft Drinks

This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.

See all of our definitions
Share:

NEW REPORT GUARANTEE

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!